Covidien said 2 of its subsidiaries "have supplied pelvic mesh products to 1 of the manufacturers named in the litigation," noting that it’s indemnified that manufacturer against certain of the personal injury claims in the lawsuits. Covidien has said in the past that supplies mesh products to C.R. Bard (NYSE:BCR) for use in pelvic mesh products.
"During the quarter ended June 27, 2014, Covidien received additional information regarding the nature of products liability claims and potential exposure based on access to medical records, discussions with plaintiff attorneys and settlements by other manufacturers. Accordingly, Covidien recorded a pre-tax legal charge of approximately $180 million in the 3rd quarter of fiscal 2014," according to a regulatory filing.
During fiscal 2012, Covidien recorded legal charges of $49 million, net of insurance recoveries, related to its indemnification of Bard, the company said last year.
As of March 28, there were roughly 6,000 cases pending "believed to involve products manufactured by company subsidiaries," Covidien said in a separate filing.